Alert Level 4 restrictions affect the council’s ability to complete the final stages of the valuation process and the Valuer General’s ability to conduct an onsite audit of these values.
The release of Auckland Council’s updated property values in October has therefore been delayed and will now be available in December 2021.
2020 revaluation deferral
All councils in New Zealand are required to revalue properties within a three-year period. The council’s revaluation was set to take place in 2020. However, the lockdown last year made it difficult to conduct a reliable revaluation. Property valuations are generated using recent sales data of comparable properties and other relevant market evidence such as rental levels.
Due to COVID-19 there was limited data available. As a result, the Valuer-General agreed to Auckland Council’s request to defer its 2020 general revaluation for one year.
Why has release of the updated property values been delayed?
Due to Auckland being at Alert Level 4, the council has faced difficulties in completing the final stages of the revaluation process with a dispersed workforce due to COVID-19 restrictions
Additionally, the Valuer General is not able to travel to Auckland to conduct the audit of the council’s revaluation as planned. The Valuer General’s audit is an extensive exercise, with Auckland Council being the largest revaluation in New Zealand by a significant margin. Therefore, it is important the Valuer General can conduct the audit on-site if possible, for ease of access to the council’s systems and to test valuation processes.
For these reasons, the council has delayed the release of updated valuations until December. The extension allows the Valuer General to conduct the audit in person if the country is at the necessary Alert Level, or otherwise, prepare for what will be a substantial virtual audit.
This issue is not exclusive to Auckland, and other territorial authorities with a 2021 revaluation may also experience delays.
What is the impact of the delay?
Given updated property values do not affect rates until 1 July 2022, there are no flow on impacts in this regard. The council will still be able to determine its rates distribution for the Annual Budget 2022/2023.
What is revaluation?
The value of properties is one of the factors we use to calculate each ratepayer’s share of rates so it is important we are using current figures to ensure a fair rating system. The property market is dynamic which is why these values change over time. We compare recent sales in the area with the property being valued.
The capital value is made up of two parts: the land value and the value of improvements.
The revaluation is a ‘point in time’ exercise and is not meant to reflect the ongoing probable sale price of a property.
Revaluing Auckland’s properties won’t affect the amount of money the council collects from rates. It helps us make sure we are sharing the rates requirement fairly between properties as valuations move across the city.
Revaluation won’t affect rates until 2022
The impact of revaluation won’t come into play until 1 July 2022. Your current rates will stay the same until then.
Visit aucklandcouncil.govt.nz/revaluation to find out more.